New Material pt.1 Flashcards
Define and provide an example of an objection
Objection: A concern or a question raised by the buyer; doesn’t have to be in question format
ex.) I have no money
We discussed common objections related to six topics. List them and provide an example for each
Needs
I do not need the product or service
Product
I need more information
Price
I have no money
Source
I don’t like your company
Time
I’m not interested today
Other
We have no room for your line
Using a cost/benefit framework, at which point will a customer be inclined to purchase from you?
If benefits outweigh costs, the decision will be to buy.
What are two things to do when faced with an objection? What are two things not to do when facing objections?
Welcome the objection – don’t hide from it, bring it out
Be sincere about answering them. Be too blunt.
Don’t:
be defensive.
Argue.
What is forestalling and how is it beneficial? Provide an example of forestalling in a sales presentation
Forestall – provide information ahead of time to prevent objections – perhaps even mention during presentation
ex.) I know it is a little more expensive, but let me tell you about the features that our product has compared to others.
What are three things you can do when dealing with a difficult customer?
Be calm
Be open
Be honest
Define and provide an example of the following responses to objections: direct denial, indirect denial, compensation method, referral method, revisit method, acknowledge method, and postpone method
Direct Denial: salesperson makes a relatively strong statement to indicate the error the prospect has made
Ex: I’m surprised your firm is still in business. Weren’t they under investigation for fraud last year? → not true
Indirect Denial: Salesperson denies the objection but attempts to soften the response
Ex: Your products break down more often than those of most of your major competitors → maybe in the past, but not anymore
Compensation Method: Acknowledging objections’ validity and then showing any compensating advantages
Ex: Your product doesn’t do everything Company X’s does → true and that’s why we are 25% cheaper
Referral Method: Relating how other found initial opinions to be unfounded after they tried the product
Ex: I can see how you feel…others felt the same way…yet they found…
Revisit Method: Salesperson turns the objection into a reason for buying
Ex: buyer mentions problem, you turn into a solution
Acknowledge Method: Salesperson lets the buyer talk, acknowledges it and moves on to another topic after a pause
Ex.) Hey, look a squirrel, hope to never bring it up again.
Postpone Method: Buyer raises an objection which salesperson would prefer to answer later
Ex: Can we take this off-line?” – not just in sales – when manager is pisses
- Seek permission to answer question after presentation
When dealing with price as an objection, what should your first response not be? What is the two-step approach to establishing value?
First response should not be to lower the price
Two-Step Approach: look at the objection from the customer’s viewpoint
Sell value and quality rather than the price
What are three goals of closing?
To help the buyer solve real problems, not just to sell your merchandise
To increase credibility
To meet your goals
Though this is a SECONDARY goal – customer’s needs first!
What do you study prior to determining your price?
Competitor’s offerings
Value delivered by the product or service
Cost of providing the product or service
Define the following salesperson styles: aggressive, submissive, and assertive.
Aggressive: Control the sales interaction but fail to gain commitment
Submissive: Excel as socializers but rarely try to obtain commitment
Assertive: Self-confident and positive
Assertive comes with experience
List, define, and provide an example of each of the four effective methods for closing we discussed in class.
Direct request method- Asking the buyer for commitment
ex.) Do we have a deal?
Benefit summary method- Reminding the buyer on the agreed-on benefits of the proposal
ex.) Remember that we will give you 5 new products a year and give you a discount price.
Balance sheet method- Helping prospects who cannot make a decision, even when the reason for their behavior is not apparent
ex.) Writing down pros and cons. Of course more pros
Probing method- Using a series of probing questions to discover the reason for the hesitation.
ex.) In your opinion, does what I’m offering solve the problem?
List and provide an example for three of the traditional (“sales-y”) closing methods we discussed in class
Assumptive close: seller begins the paperwork before the sale is closed, or fills it out while buyer answers questions
standing-room-only close: seller focuses on the negative side of waiting, saying that the product the buyer wants will be sold to someone else
Emotional close: get personal…too personal (“I’ll lose my job”, “my kids won’t eat”)
What are three components of an action plan?
- Review what you will do next
- what the customer will do next
- When you will meet again
Define negotiations. What is an example of a minor issue and a major issue that might come up in a negotiation?
Negotiation: Bargaining process through which buyers and sellers resolve areas of conflict and arrive at agreements
Minor issues - Who should attend future meetings
Major issues - Cost per unit or exclusive purchase agreements
